-1
to 1
(or vice versa). While this shift often appears first on higher frequencies (e.g. on a 14 minute series before a 15 minute one), the key is finding the right balance. Overly high frequencies, such as 1 second, risk focusing on smaller fluctuations that don’t reflect the broader, underlying change.
Interpreting the Speed of Propagation
The speed at which information propagates across timeframes is a key indicator of the underlying change’s strength.
1
indicator suggests a weak change, while a sustained series of 1
indicators confirms a strong, persistent change, growing in strength as the chain lengthens.
Non-Propagating Information
An indicator that appears briefly on one timeframe but fails to propagate to a lower frequency typically indicates the exhaustion or end of a directional change.